JP Morgan Highlights Uncertainty for Venezuela Sanctions Relief

Venezuela and Guyana border dispute events this week have added further uncertainty over sanctions relief persisting according to a recent note by JP Morgan analysts.

• “We remain of the view that the US administration seems to want to give the current policy path a sufficient chance to see if it can change the trajectory of the status quo in Venezuela.” it said.
• It added that Maduro still has motivation to comply with the agreements to generate more oil revenue to help his popularity ahead of his re-election bid next year.
• “Recent developments certainly work against this scenario.” its analysts said referring to the border dispute with Guyana and progress towards meeting the terms of the Bardos deal that saw oil and gas sanctions eased.
• “The situation remains fluid heading into what could be a (more) noisy year’s end.” it concluded.
• The Presidents of Guyana and Venezuela are set to meet Friday in the first major diplomatic attempts to ease pressure over the oil rich border dispute that have escalated in recent weeks.